Sniip accepting Amex at same rate as Visa/Mastercard

Asaiyo

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Looks like DEFT has dropped AMEX surcharge to 1.5% directly:

Card transactions
(including direct debit arrangements and one-off payments)
  • Visa Debit: 0.40% surcharge
  • Visa Credit: 1.50% surcharge
  • Visa International: 4.00% surcharge
  • MasterCard Debit: 0.40% surcharge
  • MasterCard Credit: 1.20% surcharge
  • MasterCard International: 4.80% surcharge
  • American Express: 1.5% surcharge
  • Diners Club: 3.773% surcharge
*The surcharge is a percentage of the transaction amount.

Just confirming we earn 100% points paying DEFT with AMEX right? No point to continue using Sniip then?
 
Last edited:

Asaiyo

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@bobbinbrisco I guess waiting for Sniip is pointless now that we can go direct with DEFT for 1.5%?

I guess Im looking for clarification that I'll earn full AMEX points paying directly with DEFT right?
 

albyd

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That's great news on Amex with DEFT - assumed they didn't want to give a cut of the fees to Sniip so they just cut the fee to us directly which is great - less fiddling around. Shame it took Sniip coming into the market to get to this. Poor old Diners still in the stratosphere.
 

dansyd

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Keen to hear how much you value AMEX MR points at if you’re using Sniip with a 1.5% surcharge?
 

albyd

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The way I look at it is that it is a "business" expense so it's reduced by my tax rate then the cash value of MR points so washes its face. There is upside if the airline point devals aren't as horrific as they might be when things get going again. I'm thinking of this as "upside" given the value of airline miles might not be as high post COVID as they were before.

YMMV.
 

dansyd

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Breaks even.
Thanks very much.
The way I look at it is that it is a "business" expense so it's reduced by my tax rate then the cash value of MR points so washes its face. There is upside if the airline point devals aren't as horrific as they might be when things get going again. I'm thinking of this as "upside" given the value of airline miles might not be as high post COVID as they were before.

YMMV.

I’d love to see your calculations around breaking even.
 

albyd

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In my case:
Gross Fee 1.50%
less:
Tax [email protected]% -0.45%
Amex MR Cash eq -1.125%
Net cost: -0.075% (profit)

Everyone's results will vary depending on the Amex card and MR earn rate (ie Platinum & Centurion worthwhile, others maybe there's a cost). I'm using an example rate of tax for instance for companies - just use yours (eg personal tax at 50% has a greater impact). Talk to your accountant first before deciding if this methodology applies to you as I don't know your personal tax situation. YMMV.
 
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